City of San Diego Receives Federal Award of Excellence in Economic Development
Department of Commerce Singles Out City's Business Finance Programs for Excellence

SAN DIEGO - The City of San Diego's Community and Economic Development Department received high honors today when the U.S. Department of Commerce announced the organization as the winner of the 2004 Urban or Suburban Excellence in Economic Development Award. The award recognizes the City of San Diego's commitment to sound, research-based, market driven economic development in helping grow the local economy.

The Urban or Suburban Excellence in Economic Development Award praises the efforts and achievements of the City's Business Finance team and its dedication to encourage entrepreneurship throughout the city through the creation of a number of programs and initiatives designed to ensure expansion capital access to support local firms. The most innovative and highly coveted aspect of the City's Business Finance Section is its ability to leverage three separate revolving loan funds to address the full spectrum of funding needs for small businesses, including:

• EmTek (Emerging Technologies) Fund - a $2.5 million loan fund that provides capital to technology companies that have the capacity to generate follow-on investments, creating the potential for large companies that promote regional prosperity
• San Diego Regional Revolving Loan Fund - a new $3 million loan fund that provides capital to the mid-level non-technology companies that have a strong likelihood of generating jobs
• Metro Revolving Loan Fund - a new $500,000 loan fund provide funding to the underserved small business owner located in a low- and moderate-income census tract that needs start-up capital, but can't meet the terms of traditional banks

"I'm honored to recognize the City of San Diego Community and Economic Development Department Business Finance Section for its outstanding efforts to empower California residents by attracting the private sector investments and creating higher-skill, higher-wage jobs," said Commerce Secretary Don Evans. "This award is a great example of our appreciation of organizations like this to help grow the economy and create jobs for local citizens."

The Commerce Department's Economic Development Administration (EDA) along with Congresswoman Susan Davis and Congressmen Bob Filner, who serve as representatives for those districts where businesses have utilized the programs, presented the award to Hank Cunningham, director of the City's Community and Economic Development Department along with representatives of the City's Business Finance team. The Capitol Hill reception was part of the EDA National Conference at the Omni Shoreham Hotel in Washington D.C.

"We are pleased to be honored for our efforts to provide unique and collaborative business finance programs to foster entrepreneurial growth, create jobs and strengthen San Diego's regional economy," said San Diego Mayor Dick Murphy. "San Diego is well-known for its strong, diversified economy and we will continue to seek new partnerships, such as the one we have cultivated with the Department of Commerce, to provide economic development opportunities for San Diego businesses."

Since the City of San Diego created the first of its business loan programs, the EmTek Fund, nearly 10 years ago, it has enjoyed success funding many local companies with millions in seed investment, creating new jobs and strengthening San Diego's entrepreneurial growth. The City has also facilitated bond financing designed for larger job-creating capital expansion projects by providing qualified manufacturers and nonprofits with access to below-market, tax-exempt interest rates. With the recent addition of two new revolving loan funds, there is now even more funding available to local businesses.

"Private venture and 'angel' capital has dropped off over the last few years, and that has been bad news for smaller, innovative but often higher-risk companies that are so important to the San Diego economy," said Hank Cunningham, director of the City's Community and Economic Development Department. "That's where our programs come in. We are bridging the financing gap for local entrepreneurs and growing firms."

Historically San Diego has facilitated more than $2.5 in revolving loans to businesses through its first loan program, which leveraged an additional $18 million in private capital investment, and more than $700 million in bond financing on behalf of San Diego businesses. Since recently adding two new revolving loan programs, the City has another $1.75 million in loans currently in the pipeline.

"I am certain my business would not be as successful as it is today without the City's investment," said Joseph Vilella, CEO and founder of Vectron, Inc, a San Diego-based company that specializes in the design and manufacturing of innovative, leading-edge mechanical, electronic and image processing equipment. "They've created loan programs that actually help fill financing gaps and allow businesses to grow. These are exactly the kinds of creative business assistance programs that actually help new and expanding companies like mine succeed."

The City of San Diego encourages local businesses to tap into its suite of revolving loan funds. For more information on the City's business finance and assistance programs, visit the City's Web site at www.sandiego.gov/cpci or call the Community and Economic Development Department at (619) 533-4233.

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With an emphasis on the City's urban core neighborhoods and low and moderate income residents, the Community and Economic Development Department strives to improve the quality of life and ensure a healthy economy in San Diego through job development, business development, neighborhood revitalization, public improvements, redevelopment, social services, and revenue enhancement.

The U.S. Economic Development Administration serves as a venture capital resource to meet the economic development needs of distressed communities throughout the United States. EDA partners with states, units of local government and community nonprofit organizations in economically distressed areas, regions and communities in order to alleviate conditions of poverty and substantial and persistent unemployment and underemployment.